Business news from Ukraine

Business news from Ukraine

“Avtostrada” wins tender for construction of metro to Vynohradar

15 July , 2024  

Avtostrada Group of Companies has been recognized as the winner of the procurement procedure for the construction of the metro in Vynohradar, its founder Maxim Shkil said.
“We will start work without advances, at the expense of our own working capital. For us, the decision to enter the metro construction market is strategic, the company has been preparing for this for 3 years,” Shkil wrote on Facebook.
According to the public procurement platform Prozorro, the winner of the tender was determined on July 12 with a price of UAH 13 billion 785 million, which is slightly lower than the stated expected cost of the purchase of UAH 13 billion 956 million 843 thousand 711.13. The decision can be appealed until July 18.
The terms of the procurement stipulate the completion of construction (5th and 6th launch complex) of the Syretsko-Pecherska subway line to the Vynohradar residential area by December 30, 2026.
Shkil said that before the start of work, a detailed analysis of the status of work performed by previous contractors is required. Next, it is necessary to compare the actual amount of work performed and those that should be performed in accordance with the existing design solutions. After that, it is necessary to adjust the project in terms of the scope, type of work, and cost.
“For this purpose, Avtostrada has its own design institute with a separate underground construction unit, where employees have considerable experience in metro design. Accordingly, we will start this stage of work immediately,” said the founder of the group of companies.
In parallel with the documentary work, it is planned to start the construction of the metro to Vynohradar in the coming months.
He noted that there are difficulties with organizing the construction process at the highest possible pace, i.e. nine construction sites with round-the-clock operation.
“In today’s realities, it is impossible to ensure such an approach from the very first days, as the subway construction industry has been practically lost over the past ten years. From the very first days, Avtostrada will engage its employees, and in parallel, to reach the maximum construction schedule, we will recruit and train personnel, which will actually revive the metro construction industry,” said Shkil.
According to him, a significant factor that will affect the pace of construction is timely funding from the state for the work.
“We set ourselves the task of reaching the full pace of work around the clock in all construction sites in 2025, provided that we have adequate funding. In total, we plan to employ more than 4000 people. The total investment in this project will be more than $50 million. Next month, the company plans to contract the necessary equipment for the construction of the subway for more than $30 million. In addition, to avoid construction interruptions, we are counting on loans and our own working capital of up to UAH 1 billion. – These funds will be used in case the customer has a delay in financing. This will allow us to cover short cash gaps and continue to operate,” Shkil said.
As reported, on May 13, Kyiv Metro announced a tender for the continuation of the construction of the Syretsko-Pecherska line towards the Vynohradar residential area with a total cost of UAH 13,956 million.
In December 2023, Kyiv Metro terminated the contract with Kyivmetrobud JSC in court due to unsatisfactory terms of construction works performed by the contractor. The claim also seeks to recover a portion of the prepayment, the use of which was not confirmed by the relevant acts of completion. As of May 2024, the facility has constructed a right distillation tunnel with a length of almost 1,250 meters from Mostytska station to Syrets station, and completed the construction of the main structures of the distillation ventilation unit. Also, the wall-in-soil method of enclosing structures, monolithic and reinforced concrete support of the pit with metal structures – with excavation and removal of soil – were partially installed; the main structures of the combined traction substation were built; two-tier tunnels were partially constructed, etc.

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